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Blockchain-based stocks are about to land on the Kraken platform
Traditional exchanges are embracing blockchain technology infrastructure
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Nasdaq Venture Capital Group has invested $100 million in Payward (Kraken's parent company)
The investment brought Payward's valuation to $21 billion. Tokenized versions of Nasdaq listed stocks will be available on the Kraken platform while retaining full shareholder voting rights. Nasdaq's market monitoring system will be used on Payward's cryptocurrency, equity and derivatives platforms. This round of financing follows Deutsche Börse's $200 million injection in April this year and Kraken's cooperation with the London Stock Exchange.
This major move marks Wall Street's acceptance of blockchain technology. Nasdaq announced on Thursday that it has committed to investing $100 million in Payward, the entity behind cryptocurrency exchange Kraken. The transaction established Payward's market value of $21 billion.
Nasdaq's venture capital arm executed the investment, expanding the initial partnership previously announced in March. Under the terms of the agreement, Kraken plans to provide blockchain-based representation of Nasdaq-listed securities through its trading infrastructure. Investors will be able to purchase and manage these digital securities while enjoying the same voting rights as traditional shareholders.
According to Arjun Sethi, co-CEO of Payward, the next phase of the partnership aims to introduce Nasdaq Equity Tokens that operate on a continuously running infrastructure while retaining all shareholder interests. Reports in May noted that Payward had sought additional funding with a target valuation of approximately $20 billion. The transaction completed exceeded earlier estimates.
For Nasdaq, this capital deployment represents strategic support for its tokenized infrastructure development initiative. The exchange submitted a tokenization framework to the U.S. Securities and Exchange Commission a year ago. In addition, Payward plans to integrate its surveillance and compliance technologies into its operations, covering cryptocurrency markets, traditional stocks, tokenized securities and derivatives platforms.
This cooperation follows Nasdaq's recent announcement of plans to acquire Level Markets, further advancing its strategy to move towards continuous trading capabilities.
Traditional exchanges embrace blockchain technology infrastructure
Nasdaq's move reflects broader industry trends. The New York Stock Exchange (NYSE) has announced the development of its own platform to provide round-the-clock access to tokenized stocks and exchange traded funds (ETFs). Just a few weeks ago, Kraken struck a partnership with the London Stock Exchange to provide nearly 24/5 trading time to access tokenized products that track major UK securities. Implementation work is scheduled to take place in 2027.
Deutsche Börse invested $200 million in Payward in April this year in an agreement that also focuses on distributed ledger technology for securities and tokenized financial instruments. Data from RWA.xyz shows that the total market value of tokenized stocks has exceeded US$2.9 billion, an increase of 7.4% from the previous month.
This capital commitment highlights Nasdaq's continued efforts to integrate traditional stock markets with blockchain technology and enable continuous trading operations.
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